Monday, August 13, 2012

California AG Sues Veterans Aid Charity

In Help Hospitalized Veterans Charity Accused of Diverting Donations, the Los Angeles Times reports that California Attorney General Kamala D. Harris has sued a Riverside County charity supporting programs for military veterans and active-duty personnel. The organization, Help Hospitalized Veterans, has allegedly expended funds for excessive salaries and pensions and engaged in other inappropriate conflict-of-interest transactions. The AG’s lawsuit requests the recovery of $4.3 million of the charity’s assets and removal of several officers and board members. The story further states that administrative inefficiency has previously been a concern of critics of the charity:

In 2011, the tax-exempt group reported revenue of $45 million, including $30 million in cash donations. But the watchdog group CharityWatch says only 35% went to programs for military personnel, compared with the 65% that many similar groups report.

The Times states that the charity’s longtime president, now-retired Roger Chapin, was unavailable for comment.

JRB

http://lawprofessors.typepad.com/nonprofit/2012/08/california-ag-sues-veterans-aid-charity.html

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